New FATF guidelines: A major threat to privacy coins like Monero, ZCash

Since the FATF announced, its “travel rule” exchanges have been harsh on the majority of privacy coins as they continue to delist them from their platforms. Cryptocurrencies such as Zcash, Monero, and Dash makes it challenging for exchanges to comply with the regulators. 

According to the new FATF guidelines, crypto exchanges have to expose the information of users who would make transactions of $1000 or above. This privacy threatening guideline aims to help regulators keep a check on suspicious activities. Exchanges like Coinbase and OKEx have delisted some of the privacy coins from their platforms.

According to a Bloomberg report, the future of privacy coins is in the dark as getting delisted from the exchanges would dry up their liquidity. Since the FATF announced its new guidelines for crypto exchanges, the value in the prices of leading privacy coins has gone down drastically. 

Zcash, Monero, and Dash have a combined market capitalization of $2.5 billion. Since mid-June Monero’s price has gone down by 30%, Dash lost is value by 40% and Zcash almost dropped by 50%. 

However, developers behind these coins have insisted that these coins can be in full compliance with new FATF guidelines. Ryan Taylor, chief executive officer at Dash Core Group, told Bloomberg that Dash is identical to Bitcoin and is 100% capable of meeting the requirements. Binance CEO, Zhao Changpeng announced that the largest crypto exchange’s lending business would support Monero, Zcash, and Dash. 

Do you think privacy is a fundamental right? https://t.co/TZaVT5Uis4

— CZ Binance (@cz_binance) September 17, 2019

FATF will conduct a review in June 2020 in its member countries to see how they are implementing the guidelines, and non-compliance could lead to a penalty and shutting down of the crypto exchange. Let us know in comments, what do you think about the new FATF guidelines and privacy coins?